46 U.S.C. § 55305 — Cargoes procured, furnished, or financed by the United States Government

(a) Minimum Tonnage. When the United States Government obtains, within or outside the United States, equipment, materials, or commodities for itself; furnishes them without reimbursement to or for a foreign country, organization, or person; finances them with Federal funds for any person, unless otherwise exempted; or advances funds or credits or guarantees foreign-currency convertibility connected with furnishing or obtaining them, the appropriate agencies must take necessary and practicable steps to ensure that at least 50 percent of the gross tonnage that may travel by ocean vessel^* travels on privately owned U.S. commercial vessels. The 50 percent is calculated separately for dry bulk carriers, dry cargo liners, and tankers. This applies to the extent those vessels are available at fair and reasonable rates, and the agencies must ensure fair and reasonable participation by geographic area.

(b) Eligible Vessels. A privately owned commercial vessel is eligible to carry this cargo if it is documented under U.S. law: (1) for at least three years; or (2) after January 1, 2030, for less than three years if its owner signs an agreement with the Secretary providing that (A) the vessel will remain documented under U.S. law for at least three years, and (B) at the Secretary's request, the owner will agree to enroll the vessel in an emergency preparedness agreement or a voluntary agreement authorized under section 708 of the Defense Production Act of 1950 (50 U.S.C. 4558), and will keep it enrolled until it is no longer documented under U.S. law.

(c) Violation of Agreement. A vessel covered by an agreement under subsection (b)(2) may be seized by and forfeited to the United States if, in violation of the agreement, (1) its owner places it under foreign registry, or (2) someone operates it under a foreign country's authority.

(d) Waivers. (1) If the President, the Secretary of Defense, or the Secretary of Transportation declares an emergency that justifies temporarily waiving this section or section 55314, that official may waive compliance to the extent, in the way, and on the terms prescribed by the Maritime Administrator, acting as Director of the National Shipping Authority. Before doing so, the Maritime Administrator must determine that qualified U.S.-flag capacity at fair and reasonable rates is unavailable to meet the applicable requirements. No other waiver is authorized. (2)(A) A waiver may last no more than 60 days. (B) When that period ends, the Maritime Administrator may extend it by no more than 30 days if the determinations in paragraph (1) still apply. (C) All waivers and extensions for one set of events together may last no more than three months in a fiscal year. (3) For each paragraph (1) determination, the Maritime Administrator must (A) identify actions that could enable qualified U.S.-flag capacity to meet the requirements at fair and reasonable rates, (B) notify the Secretary of Transportation and, when applicable, the President or Secretary of Defense, and (C) publish the determination on the Maritime Administration website within 24 hours after notifying the Secretary of Transportation and in the Federal Register. (4) The Maritime Administrator must notify (A) the Senate Committees on Commerce, Science, and Transportation and the House Committee on Transportation and Infrastructure of a waiver or extension request made by the Secretary of Transportation within 72 hours after receiving it, and of its issuance and why it was necessary within 72 hours after issuance; and (B) the Senate Committees on Commerce, Science, and Transportation and Armed Services and the House Committees on Transportation and Infrastructure and Armed Services of a waiver or extension request made by the Secretary of Defense within 72 hours after receiving it, and of its issuance and why it was necessary within 72 hours after issuance.

(e) Programs of Other Agencies. (1) Each department or agency^* responsible for a program under this section must administer it under the Secretary of Transportation's regulations and guidance. After consulting the department, agency, organization, or person involved, the Secretary alone decides whether the program is subject to this section. (2) The Secretary (A) must review covered programs annually and report annually to the House Committee on Transportation and Infrastructure and the Senate Committee on Commerce, Science, and Transportation; (B) may direct agencies to require equivalent amounts of otherwise uncovered cargo to travel on U.S.-flagged vessels when cargo was shipped on foreign carriers in violation of this section; (C) may impose a civil penalty of up to $25,000 for each willful and knowing violation, with each continuing day after shipment counted separately; and (D) may take other appropriate measures under the Federal Acquisition Regulations or a contract.

(f) Security of Government-Impelled Cargo. (1) To ensure the safety of vessels and crew members carrying cargo under this section, the Secretary of Transportation must direct each responsible department or agency, except the Department of Defense, to reimburse owners or operators of U.S. vessels for the cost of providing armed personnel aboard when the vessels travel through "high-risk waters," subject to available appropriations. (2) "High-risk waters" means waters designated by the Coast Guard Commandant in an effective maritime security directive, if the Secretary of Transportation determines that an act of piracy occurred in the 12 months before the voyage begins or issued an advisory during that period warning that piracy is possible in those waters.